Fed speaks out on governor's dismissal

(Dan Tri) - After President Trump fired Governor Lisa Cook, the Fed officially spoke out.

The US Federal Reserve (Fed) has just officially spoken out about President Donald Trump's announcement of firing Governor Lisa Cook. The agency affirmed that it will respect any ruling from the court.

" Congress passed the Federal Reserve Act and provides that governors serve long, fixed terms and can only be removed by the president for cause," a Fed spokesperson said, stressing that the legal framework protects the agency's independence.

A Fed spokesman said Cook will take the case to court through her personal attorney, Abbe Lowell.

Governor Lisa Cook at a Fed meeting in Washington on June 25 (Photo: AFP).

President Trump also told reporters that he would respect any decision from the court on the matter.

He reiterated the content of the petition for prosecution that the director of the US Federal Housing Finance Agency Bill Pulte sent to Attorney General Pam Bondi on August 15.

Pulte alleged that Cook listed her permanent residence as an apartment in Atlanta, despite having previously taken out a mortgage on a home in Michigan and claiming it as her primary residence. Pulte added that the FHFA has documents documenting Cook’s “mortgage fraud.”

According to President Trump, the Fed has an important role in setting interest rates, managing reserves and member banks. The American people need to be assured that they can trust Fed members to keep their policy-setting duties.

"The President has invoked the statutory authority under 12 USC 242, which allows for the removal of a Fed Governor for cause. The President believes that Cook's credible allegations of financial misconduct are sufficient grounds for removal, especially given her key role in overseeing financial institutions," spokesman Kush Desai added of President Trump's decision.

The case is expected to begin in the Federal Circuit and the Supreme Court, where the justices will have the final say in the dispute. The ruling could set an important precedent about the limits on presidential power over independent agencies, especially the Fed.

Source: https://dantri.com.vn/kinh-doanh/fed-len-tieng-vu-thong-doc-bi-sa-thai-20250827115558804.htm